| Many people think that buying and selling stocks | | | | research and guiding them through the process. |
| on the stock market is a complicated process and | | | | You can trade stocks online for an average |
| this perception keeps them from everything | | | | commission of about $20. |
| started. If you have ever considered trading | | | | Buying and selling stocks is really no different than |
| stocks in the stock market there has never been | | | | any other transaction that involves negotiation. |
| a better time to get started. | | | | Every stock has what is called a market value. |
| Before we talk about buying and selling stocks it | | | | There is also what is called the ask price. The ask |
| is important that you have an understanding of | | | | price is what the seller is willing to sell a stock for. |
| stocks and the stock market in general. A stock | | | | The ask price might be the same as the market |
| certificate is a unit of ownership in a company. It | | | | value or it might be a few cents higher. |
| is the smallest unit of ownership that you can | | | | The same thing happens when you are the seller |
| own. If you own a share of stock you in fact | | | | of the stock. In addition to the market value |
| own a part of the company. | | | | there is also a bid price. The bid price is what |
| Before and we talk about how to buy and sell | | | | someone is willing to pay to buy the stock from |
| stocks we need to discuss the two types of | | | | you. |
| stocks available. There are common stocks and | | | | There is usually not a significant difference |
| preferred stocks. A common stock represents | | | | between the bid price or asking price and the |
| most of the stocks held by the public. Those who | | | | market value. This is especially true when it |
| own common stock have voting rights and also | | | | comes to stocks that are traded often. But you |
| share dividends. Preferred stocks are typically | | | | should keep in mind that you will not always be |
| purchased because they pay consistent dividends. | | | | able to buy a stock for the current market value. |
| When an investor buys preferred stocks it is | | | | Do some research and decide what stocks you |
| because they're looking for income from the | | | | like to buy. Determine the market value and the |
| dividends. | | | | asking price and then contact your brokerage firm |
| When most people buy stocks it is through a | | | | and tell them how many shares you would like to |
| stockbroker. Online brokerages are becoming | | | | buy and the broker buys stocks for you. |
| very popular because it is a very cheap way to | | | | It simply works like that. With little practice and |
| trade stocks compared to traditional brokers who | | | | experience youw will soon be trading like a pro. |
| often charged high rates for helping people do | | | | |